INDIANAPOLIS, IN – The Hoosiers for Responsible Lending coalition (HRL) is pleased to announce the new report Medical Debt in Indiana co-released by The Indiana Community Action Poverty Institute (Institute), Grassroots Maternal and Child Health Initiative, and Prosperity Indiana. HRL is marking the release by encouraging Hoosiers to submit personal stories of their experience with medical debt burdens.

Medical Debt in Indiana discusses the health and social impacts of medical debt, explains how individuals become indebted, provides data about financially vulnerable Hoosiers and statewide trends, summarizes recent government and private action, and recommends policy solutions to address rising medical debt.

"After seven miscarriages, I finally was able to have a child of my own, but it came at a huge cost because of the time she spent in the NICU. Medical bills created so much stress and anguish. They caused me to go through bankruptcy, and eventually I lost my home.” said Deborah Fisher, Leader with Grassroots Maternal and Child Health Initiative. “I want everyone to be aware of this problem. I believe we can all work toward solutions so that my daughter, grandchildren, and other families won't have to face the same challenges."

In a recent report by the Consumer Financial Protection Bureau (CFPB), Indiana was found to have the eleventh highest share of its population with a medical debt in collections (18.2% with $2.2 billion outstanding) in the United States and the highest among Midwest neighbors. The Census Bureau estimates that approximately one in five households nationwide and one in four households with children under 18 have medical debt, with a median amount owed of $2,000. Numbers like these are staggering, and they only become more severe when examining systemic disparities between those who bear the burden of medical debt among Black and Hispanic households, their White counterparts, and households with lower levels of educational attainment. 

“The burden of medical debt is a pervasive challenge for too many Hoosiers,” said Andy Nielsen, Senior Policy Analyst for the Indiana Community Action Poverty Institute. “This is unacceptable. This report highlights structural inequities in who bears this burden and concrete steps policymakers can take to relieve this pressure. Healthcare is a right, and individuals, families, and children should not have to choose between seeking medical care or dealing with crushing debt.”

This report makes a number of policy recommendations in order to address the growing issue of Hoosier medical debt. These range from strengthening consumer protections, to expanding enrollment methods for Medicaid, to requiring all hospitals in Indiana (nonprofit and private) to adopt robust Financial Assistance Policies that help patients who need assistance. 

Jessica Love, Prosperity Indiana’s Executive Director, said, “The findings from this report indicate that, among all Midwest states, Indiana has the highest share of its population with a medical debt in collections. This should be sobering news for any policymaker concerned with long-term economic stability. Indiana's decision-makers should act quickly to use these findings and implement recommendations to increase consumer protections for all Hoosiers."

The report was made possible through generous support from the Americans for Financial Reform.  "We're excited to see such good work being done on medical debt and how it affects people in Indiana and across the country," said Candace Archer, Consumer and Payday Campaigns Manager for Americans for Financial Reform Education Fund.

Medical Debt in Indiana was informed by the Indiana Community Action Association’s 20220 Community Needs Assessment and personal stories shared by those experiencing the medical debt burden. If you or someone you know in the state of Indiana is willing to speak with the researchers and potentially testify about their own experiences with medical debt, please share or fill out this form so that we may reach out to you. 

Read the full report here.

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About Indiana Community Action Poverty Institute

The Indiana Community Action Poverty Institute promotes public policies to help Hoosier families achieve financial well-being. We value, gather, and translate quantitative and qualitative data to communicate the opportunities and challenges that Hoosiers experience. We advance well-being by promoting evidence-based solutions and building coalitions to engage in direct and strategic conversations with policymakers and the public.

About Grassroots Maternal and Child Health Initiative

The Grassroots Maternal and Child Health (MCH) Initiative builds the capacity of community members and organizations to bring about systems change that improves maternal and child health outcomes in marginalized neighborhoods across Indiana. We train, mentor, and partner with Grassroots MCH Leaders to bring about community-centered approaches that address inequitable social and economic systems underlying poor maternal and child health outcomes. Our current areas of focus include building the capacity of affordable housing communities, early childhood education centers, faith-based organizations, and mothers exiting the justice system. In addition, we support the development of teen grassroots MCH leaders to bring about sustainable, generational change in maternal and child health. We are grateful for funding from: Riley Children's Foundation, Indiana Dept. of Health, and private and corporate philanthropists.   

About Prosperity Indiana

The Indiana Association for Community Economic Development d/b/a Prosperity Indiana builds a better future for our communities by providing advocacy, leveraging resources, and engaging an empowered network of members to create inclusive opportunities that build assets and improve lives. Since its founding in 1986, Prosperity Indiana’s network has grown to nearly 200 organizations, representing thousands of practitioners statewide from the public, private, and nonprofit sectors.

About Hoosiers for Responsible Lending

Hoosiers for Responsible Lending was created by a network of advocates working to empower Hoosiers who have been affected by any form of predatory lending. HRL raises awareness of predatory practices across Indiana in order to hold lenders accountable and create attainable pathways to wealth building for all Hoosiers. The alliance includes veterans organizations, faith communities, consumer groups, and social service providers who recognize both the benefits of equitable, responsible lending and the damages of predatory lending.